The state House of Representatives released their version of the state FY24 budget on Wednesday, April 12th, and will soon begin their budget debate. The state Senate will take up the FY24 budget after the House.
Mayor Sarno states, “Municipalities across the Commonwealth, especially our Gateway Cities such as Springfield, would greatly benefit from an increase in state aid, especially in our UGGA which saw a 2.7% increase last year from Governor Baker and the state Legislature, and a 2% increase in Governor Healey’s FY24 budget. In addition, due to inflation and an increase in the cost of goods and materials, communities need an increase to our allocation of state Chapter 90 funds to help maintain our local roadways.”
He continued, “Additionally, under Massachusetts General Law (MGL) Chapter 44, Section 53, all money received or collected from any source by a municipality belongs to its general fund and can only be spent after appropriation, unless a general or special law provides an exception. This rule can present accounting challenges for local municipalities when conditional revenue is received, because the law requires this revenue to become part of a municipalities general fund even though it has been earmarked for a specific purpose (e.g., opioid settlement funds). As a result, these funds often become part of the next fiscal year’s free cash certification, creating confusion around how the funds can be used and accounted for. Passage of legislative language to amend MGL Chapter 44, Section 53 (‘general fund revenue exception’), would allow municipalities to keep these monies out of the general fund and allow the creation of a dedicated account for the intended purpose.”